[Rhodes22-list] Where's the oil.

[Brad Haslett]

Bill,

You pretty much figured it out.  The developers make money on dry holes as
well.  The worst thing about becoming one of the "useful idiots" that they
call "sophisticated investers" is that your phone number gets sold to other
investment schemes.  I get two calls a week to invest in the next Hollywood
blockbuster.

Now if you'd like to invest in a sure fire, can't lose construction venture,
you've got my number.

Brad


On 2/14/07, Bill Effros <bill at effros.com> wrote:
>
> Wait! Wait!
>
> I've got this bridge right next to my place in Brooklyn--goes straight
> to Manhattan--150,000 crossings a day--no tolls on it right now, but
> we're going to buy it, make people pay $5 to cross it, reduce the number
> of cars in Manhattan, and make a fortune--Do the Math!--It's a win-win!
> Can't miss! Opportunity.
>
> Contact me back channel for where to send your check.
>
> Bill Effros
>
> Brad Haslett wrote:
> > Rummy,
> >
> > Investing in individual new wells is not for the faint of heart.  I
> > bought a
> > small piece of a gas well that was being drilled in south Texas two
> years
> > ago.  They hit a very productive pay zone at around 11,000 feet, right
> > where
> > the 3D seismic said it would be.  Then during completion, they
> perforated
> > into the water zone and the whole $3 million well went kaput (including
> > yours truly hard earned money). I still watch the mature Illinois Basin
> > field for promising prospects.  Micro-drilling holds some promise of
> > cutting
> > down well costs and there's still some hope for re-opening some
> > previously
> > capped wells IF the price of oil stays high.  There was a provision in
> > the
> > Energy Dept. bill passed two years ago to subsidize marginal wells
> > starting
> > around $18 per barrel to slow down the capping rate when the cost of
> > electricity for lift exceeds the value of the oil.  No one really
> > believes
> > we'll see oil that cheap anytime soon so the provision is
> > meaningless.  What
> > would really help in the Illinois Basin and other mature fields is if
> > electricity was cheaper.  The cost of 3D seismic keeps falling but it is
> > still over $30,000 per acre.  You better be confident there's a
> > prolific pay
> > zone before you call the seismic team.
> >
> > Nukes anyone?  Hello?
> >
> > Brad
> >
> > On 2/14/07, R22RumRunner at aol.com <R22RumRunner at aol.com> wrote:
> >>
> >> I have a friend in Houston, TX who is an investment banker. He
> >> mentioned
> >> a
> >> project he was working on for purchasing 55 square miles of land in
> >> Texas
> >> for
> >> oil drilling. I told him that I thought all the oil was gone
> from  Texas
> >> and
> >> this is his reply.
> >>
> >>
> >> I might have thought the same thing.  I have a good  friend, a PHD
> >> Geophysicist and former professor of geology at the  University of
> Utah,
> >> who thinks that
> >> the oil and gas yet to be discovered is  equal to what has so far been
> >> found.
> >> He bases his conclusion on what he  describes as the reality of geology
> >> vs.
> >> what geologists "thought" about  geology.  He says that based on the
> >> data
> >> and
> >> information  available 25 years ago anyone might conclude that the
> >> product
> >> yet
> >> to  be discovered was declining.  The reality is that there is a huge
> >> contrast  between the information available now about the subsurface
> vs.
> >> the
> >> thinking before the advent of the technologies we now use in the search
> >> for oil  and
> >> gas.  The new technologies show that what was thought to be true, is
> >> not.
> >>
> >> Most of the geophysicists I know say the same thing.
> >>
> >> I might add that what I do is move the  risks of investment in the
> >> sector
> >> to
> >> the energy company - investors do not  participate; unless they
> >> choose to
> >> do
> >> so by investing in a completely  separate investment.  The goal is to
> >> invest
> >> and get capital back in a short  period of time - low  risk
> >>
> >> __________________________________________________
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> >>
> > __________________________________________________
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> >
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